We believe at Brandywine Oak Private Wealth the more a family plans… the more the family will keep after taxes. Due to the changes under the Secure Act, inherited IRA distributions can become a tax time bomb for beneficiaries! For clients who pass away after Dec. 31st, 2019, their non-spouse beneficiaries must fully distribute their inherited IRAs within a ten-year period. If the beneficiary decides to defer the distributions until ten years later, they will be subject to higher taxes due to the large distribution and its effect on their income level. Of course, there are exceptions to the rules for spouses, disabled beneficiaries, minor children of the account owner and beneficiaries who are less than ten years younger than the owner.
At Brandywine Oak, we guide our clients through the nuances of the tax code to maximize their wealth transfers to future generations. To learn more about this topic, please read Think Advisor’s https://lnkd.in/gaYw-2F